Dell - similarly to IBM without infringing on proprietary...

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1. In 1990 a recession came in and Dell published adds worldwide stating they had significantly lower prices then Compaq’s list prices, forcing Compaq to drop its list price by upwards of 32%. “PC margins were typically highest during the early days of a microprocessor generation.” The strong competition from manufacturers led to price cuts. The fact that almost all computer manufacturers could set their systems to run
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Unformatted text preview: similarly to IBM without infringing on proprietary rights made it hard for firms to differentiate their products. This in turn led to price wars because most computers accomplished the same task. In addition the wide use of the Wintel system meant that all companies were buying the same parts which kept their costs very similar while making it even more cost competitive. All of this led to very low profits. 2. No....
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